Understanding equine law

Quick facts

Written contracts key to protecting yourself and business from liability regarding equine activities.

Always contact an equine lawyer when you have a claim against someone or if someone has a claim against you regarding horses.

Minnesota statute doesn’t provide immunity for people or organizations that provide livestock activities for profit.

Make sure you and your business have proper insurance coverage.

Contracts

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A contract is a legally binding agreement. It involves two or more people or businesses (called parties) and sets forth what the parties will or won’t do.

Release and Hold Harmless Agreements

Boarding Contracts

Purchase and Sale Agreements

Breeding Contracts

Horse Lease Agreements

Mare Use Agreements

Stallion Service Agreements

Foal Sharing Agreements

Syndication Agreements

Co-Ownership Agreements

Shipping Agreements

Sponsorship Agreements

Is a verbal, handshake or gentleman’s agreement a contract?

Yes, but misunderstandings occur more often if an agreement isn’t in writing.

Can I negotiate or change the terms of a contract that I’m given?

Yes, but both parties must agree to changes. Read and understand the contract before you sign it. If you can afford it, talk to an attorney in equine law.

What if I sold my horse?

You need a written Bill of Sale to transfer ownership. Consider working with the seller to transfer ownership with any organizations that the horse is currently registered with, either for breeding or showing purposes. A written Purchase and Sale Agreement covers more of the terms of the sale.

I have a boarding facility. What can I do if a boarder doesn’t pay board?

You can put a lien against the horse for the payment of the board. Note there’s a time limit for this and you must follow certain rules.

I want to lease my horse. What do I need to cover in a lease agreement?

Lease agreements can vary. Some things to address include

The days of lease

Where the horse will be housed

If you’ll still have access to the horse

How much say you have in their care

Who is responsible for providing health care

Who is responsible for veterinary costs

Working with a lawyer

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When you have claim against someone (litigation)

Types of claims:

Horse Sales

Personal Injury

Liability Releases

Injury to Horse

Mistreatment or Abuse of Horses

Worker's Compensation (an important issue to understand if you have employees)

Anti-Trust (trademarks, patents, etc.)

Taxation

Personal Injury to Children

Equine Activity Laws

Land Use

Racing

Veterinarians

Insurance

When someone has a claim against you

If you are a defendant in an action, you will need to put together any evidence (contracts, photographs, letters, etc.) you have that relates to the case. You may also want to review any insurance policy you have. Contact your insurance agent to see if your insurance company may cover the claim against you.

You must file a case where the defendant (other party) is located or where the cause of action (injury) happened. If your claim is for less than $7,500, you may bring your case in small claims (conciliation) court. Generally, conciliation court doesn’t allow attorneys to represent parties. If you bring a claim in conciliation court,

Your damages (amount of your claim) will be limited to $7,500

You can’t bring the claim for the same injury in district court once the conciliation case is decided.

Check with local horse associations to see if there is anyone they have worked with.

Look in horse publications for advertisements.

Try online directories or web searches.

An equine lawyer is someone who focuses on equine law. It’s helpful to have an equine lawyer because they

Are already familiar with the issues you may be facing

Understand horse terminology

Have contacts in the horse industry

You can represent yourself, but it’s hard for non-lawyers to maneuver through laws and the court system.

About equine law

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Equine law consists of many standard areas of law with a specific equine elements. For example, you may face a claim of negligence if someone gets hurt from your horse.

Many states have livestock or horse liability laws. Minnesota's statute states that "a nonprofit corporation, association, or organization, or a person or other entity donating services, livestock, facilities, or equipment for the use of a nonprofit corporation, association, or organization, is not liable for the death of or an injury to a participant resulting from the inherent risks of livestock activities." (Minn. Stat. § 604A.12)

Inherent risks of livestock activities include the unpredictability of horses. All horses are capable of sudden, unexpected and possibly dangerous movements such as bolting, bucking and kicking.

Minnesota statute doesn’t provide immunity for people or organizations that provide livestock activities for profit. Further, there are exceptions to the immunity for nonprofit organizations such as if the equipment the organization provides was faulty.

Read contracts before you sign them.

A contract is a "meeting of the minds." Negotiate the contract for terms you are comfortable with. Make sure that the written contract correctly reflects the entire agreement. Keep your copy of the contract in a safe place.

Contact an attorney to understand what you are signing. Don’t agree to a contract if you don’t understand all of its terms.

Contact an insurance agent to determine the extent of protection under various insurance policies including care, custody and control, and major medical.

How you organize your business affects your potential liability. The type of entity you need varies on your business type: sole proprietorship, corporation, limited liability company or partnership.

Protect the name of your business so others can’t use it. You can register your business’ name with the Secretary of State or file for a trademark.

Have proper insurance coverage. The type of insurance you need depends on the situation. Types of insurance include commercial liability; care, custody and control; major medical; loss of use and mortality.

Use written contracts whenever possible. Written contracts can help deter the party from breaking the terms of the contract. If the terms are broken, a written contract shows documentation of the parties' agreement.

NOT LEGAL ADVICE: This information has been prepared for general information purposes only. The information is not legal advice. Legal advice is dependent upon the specific circumstances of each situation. Also, the law may vary from state to state, so that some information may not be correct for your jurisdiction. The information can’t replace the advice of competent legal counsel licensed in your state.